SLIDE 1: Recommendation
In order for Shuzworld store to sit in their prime target markets, it is important to carry out careful analyses on the three options;
1. leasing an existing box store on Route 20 the stand alone option 2. store in the Auburn Mall or do nothing
3. prepare for the best time to enter into the market
The most advisable option to go for is the stand alone store since it will have a very significant profit potential in case of favorable market conditions making a profit of $ 700, 000 and in case there is unfavorable market conditions it will make a loss of $ 500, 000. From the decision tree, the EMV of this decision is $230000. If the company goes for the option of Auburn Mall store, it will not make a profit as the case of stand - alone store because Auburn mall store has a small inventory square footage, and there is no store traffic. For this option, the company makes a profit of $ 300, 00 in case of market conditions are favorable, and when the market conditions are unfavorable the company makes $ 50, 000 losses. Based on the decision tree, the EMV of this decision in $150000
SLIDE 2: Recommendation
o The most advisable option to go for is the stand alone store o
This decision has an EMV of $230000 after conducting the survey If the company goes for the option of Auburn Mall store, it will not make a profit as the case of stand - alone store.
This decision has an EMV of $ 150000 as provided by the decision tree below
The most suitable decision is that which is most profitable to the company. This profitability is given by the EMV. In this case, the decision with the highest EMV is the opening the stand alone store with $80000 higher than the Auburn Mall store option.
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SLIDES 21: Competitive Advantage
1. Operations Management Philosophies
2. Shuzworld Company can increase the effectiveness and efficiency of the employees by carrying out the following...
References: Gage, W. L. (1966). Critical path analysis.Draughtsmen 's and Allied Technicians '
Hammersley, J. M., &Handscomb, D. C. (1964).Monte Carlo methods. London:
Schroeder, R. G., & Flynn, B. B. (2001).High performance manufacturing: Global
perspectives. New York: Wiley.
SLIDE 23: END
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